Finance

Operating Cash Flow (OCF) Calculator

Calculate cash generated from core business operations using the indirect method.

Net Income ($)

Depreciation & Amortization ($)

Change in Accounts Receivable ($)

Change in Accounts Payable ($)

Change in Inventory ($)

Other Non-Cash Adjustments ($)

Operating Cash Flow —

Working Capital Changes —

OCF / Net Income Ratio —

Formula (Indirect Method):
OCF = Net Income + D&A − ΔAR + ΔAP − ΔInventory + Other Adjustments

What is Operating Cash Flow?

Operating Cash Flow measures the actual cash generated by a company's core operations. Unlike net income which includes non-cash items, OCF shows real cash movement. An OCF/Net Income ratio above 1.0 suggests high-quality earnings.

Indirect Method

Start with net income, add back non-cash expenses (depreciation), and adjust for working capital changes. An increase in receivables reduces cash; an increase in payables adds cash.